Bulls are on hold for consolidation / correction before resuming
Spot gold eased after dismal US jobless claims lifted dollar, showing further hesitation after strong rally in past few days hit the highest in nearly eighteen years and Wednesday’s trading ended in red.
It seems that bulls are pausing on profit-taking, which would push the price lower, in a positioning for fresh push higher.
Overall structure remains bullish and fundamentals work in favor of the yellow metal, which shined during the period of global lockdown on pandemic, proving its top safe-haven position.
Fading bullish momentum on daily chart and stochastic reversing from overbought territory, support scenario of correction before bulls resume.
Initial supports at $17.05/00 (Fibo 23.6% of $1567/$1747 / psychological) stay intact for now, with deeper dips expected to find ground above strong supports at $1678/75 (Fibo 38.2% / rising 10DMA) to keep bulls in play.
Res: 1738; 1747; 1750; 1762
Sup: 1711; 1705; 1700; 1678